Salesforce.com The stock was losing steam in late trading Tuesday after the cloud-based enterprise software company Recorded strong profits. The mixed guidance appears to have disappointed some investors.
company also announced That Brett Taylor, who was president and chief operating officer, was promoted to co-CEO along with Marc Benioff and vice chairman of the company’s board of directors.
Taylor is having a big week: On Monday, he’s named CEO of
Twitter (Video: TWTR) as founder and CEO Jack Dorsey steps down as officer and director.
In late trading, Salesforce (CRM) shares were down 5.9% to $268.30. This follows a 4% drop in today’s regular session.
For the third fiscal quarter ending October 31, Salesforce reported revenue of $6.86 billion, up 27% from a year ago or 26% adjusted for currency, and in line with estimates of $6.8 billion. On a non-GAAP basis, the company earned $1.27 per share, including a gain of 28 cents to account for the market for strategic investments. Adjusted for profit, the company passed the consensus of 92 cents per share. On a GAAP basis, the company earned 47 cents per share, including 27 cents on investment gains.
Remaining performance obligations at the end of the quarter were $36.3 billion, up 20% year over year.
“We had another exceptional quarter, fueled by strong growth in revenue, margin and cash flow,” Benioff said. “With the tremendous power of the Customer 360 platform and Slack, we are on track to reach $50 billion in revenue in fiscal year 26.”
For the January quarter, Salesforce expects revenue of $7.224 billion to reach $7.234 billion, up 24% from a year ago, with non-GAAP earnings of 72 to 73 cents per share. The Street forecast earnings of $7.22 billion, 81 cents a share. The company expects a GAAP loss of 23 to 24 cents per share, which is greater than the street consensus of a loss of 15 cents. The company sees growth in its current remaining performance obligation of 19%.
For fiscal year 2022, Salesforce now sees revenue of $26.39 billion to $26.4 billion, up 24%, with non-GAAP earnings of $4.68 to $4.69 per share; The consensus was $26.33 billion and $4.42 per share.
For the April quarter, Salesforce expects revenue of $7.215 billion to $7.25 billion, up 21% to 22%, below Street’s consensus of $7.35 billion.
For fiscal year 2023, Salesforce expects revenue of $31.7 billion to $31.8 billion, up 20%, and in line with Street at $31.8 billion.
Salesforce also announced the addition of two new board members:
Williams Sonoma CEO Laura Alper and former
United Airlines CEO Oscar Munoz.
Write to Eric J. Savitz at firstname.lastname@example.org